The PYMNTS website is reporting that Amazon, Worldpay and Stripe are all expressing concerns about the state of readiness within the e-commerce ecosystem for new EU security regulations which come into effect from September.
The new Strong Customer Authentication (SCA) EU rules, require additional verification for online payments of more than €30, and the site quotes a report in the Financial Times, which says that big changes are required to processes and technology at retailers, banks and payment groups. The paper adds that the rules also need co-operation from consumers largely unaware that the changes are forthcoming.
Quoted in the FT, the chief executive of Stripe says
the state of market readiness is poor, and that the rules will effectively require every European merchant to restructure its checkout process in the largest technology migration the region’s retailers will have ever faced.
A survey carried out by the 451 Group for Stripe found less than half of its respondents expected to be ready in time for the change and predicted that
retailers could lose up to $57billion in activity in the first year after the rules come into force.
Rules designed to safeguard both retailers and consumers and provide additional security for larger transactions have to be welcomed though, and our patented Onescan payment process already meets and exceeds the forthcoming changes.
The rules look for additional authorisation – through a fingerprint scan, text message or other one-time code to protect and authorise a transaction. Retailers fear that consumers who have not shared a mobile number with their banks, or downloaded the appropriate banking app, will simply abandon their shopping baskets when they can’t comply with the authorisation process.
With Onescan, we can offer an App-free approach that simply uses the existing camera on the consumer’s smartphone to trigger the authorisation process for a transaction. It doesn’t rely on SMS so there’s no requirement to know the consumer’s phone number in advance; nor is there any need to download a code-generating app, or to set-up user names and passwords, in order to start the process. Onescan is a friction-free authentication process that enables any smartphone to initiate a secure transaction. It fully meets the new EU regulations and boosts overall payment security.
Any company in the e-commerce ecosystem – whether a retailer, a payment gateway, or an integrator – that is worried about its readiness, or the readiness of its customers, should get in touch with us now. Our integration process is quick and easy and it’s not too late to implement Onescan and be ready to comply with the new rules.